How do you find out current mortgage interest rates?

A:

Quick Answer

Websites such as Bankrate and Mortgage News Daily offer current mortgage interest rates on 30-year and 15-year fixed rate loans, 5/1 adjustable-rate mortgages and 30-year fixed jumbo mortgages, according to each website. Both sites allow users to search for current mortgage interest rates by state.

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Mortgage News Daily provides current mortgage interest rates for the Federal Housing Finance Agency, Fannie Mae and current rates listed by the Mortgage Bankers Association, cites its website. Comprehensive data lists interest rates for primary mortgage markets using live lender rates obtained through a daily rate survey. Bankrate reports three-month mortgage interest rate trends by following interest rate movements from week to week, according to its website. Each website provides interest rates on home-equity loans and home-equity lines of credit.

Banks and mortgage lenders do not set mortgage interest rates; secondary markets, such as the Federal Funds market and the repurchase agreement market, determine daily mortgage interest rates. Investors who buy and sell securities on these secondary markets dictate what lenders offer in terms of mortgage interest rates. The investors buy securities, such as mortgage-backed securities, from banks at specific interest rates, and the rates that investors are willing to pay for the securities determine current mortgage interest rates, explains Bankrate.